Monopoly without tax and without price ceiling, Macroeconomics

Assignment Help:

Here from a), profit maximizing price = 7 and Q = 10. It is shown in the figure below:-

148_Monopoly without tax.png

The consumer surplus is shown in blue area which is given as (9-7) *10*1/2 =10 dollar.

 Monopoly with tax of 50 cents per unit

Here from c), profit maximizing price = 7.25 and Q = 8.75. It is shown in the figure below:-

108_consumer surplus.png

The consumer surplus is shown in blue area which is given as (9-7.25 ) *8.75*1/2 =7.65625 dollar.

 
Monopoly without tax, but with price ceiling of $6

Here from d), profit maximizing price = 7.5 and Q = 7.5. It is shown in the figure below:-

The consumer surplus is shown in blue area which is given as (9-7.5 ) *7.5*1/2 =5.625 dollar.
* Perfectly competitive industry

In case of perfectly competitive,

MC = D

ð  5 = 45-5P

ð  P = 8

And Q from equn i) is 5

So consumer surplus = ½ * (9-5)*5 =10 dollar.


Related Discussions:- Monopoly without tax and without price ceiling

Illustrate website of at least 3 of the companies, Review the most current ...

Review the most current results of FORTUNE Magazine's annual ranking of America's "100 Best Companies to Work For." Explore the website of at least three of the companies noted. De

Trade between the two countries, Given the above trade between the two coun...

Given the above trade between the two countries, explain the trade effects on product prices, and factor incomes. Why do these effects occur?

What is the price elasticity of demand, Consider the following utility func...

Consider the following utility function: U = X 1 X 2 Where X 1 and X 2 are quantities consumed of two goods. You are considering the actions of a consumer that maxi

Describe the meaning of word -investment, Describe the meaning of word -Inv...

Describe the meaning of word -Investment When we use the word investment, we generally mean "gross investment". Essentially, gross investment comprises all finished goods which

Calculate private market equilibrium, Consider the following Marginal Priva...

Consider the following Marginal Private Cost (MPC), Marginal Social Cost (MSC) and market demand curves. These curves relate to a market for a product, the production of which gene

Assignment, Consider the economic data for Country A: Unemployment level of...

Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for

Define the fisher equation, Define the Fisher equation Fisher equation ...

Define the Fisher equation Fisher equation is: Money supply (stock of money) x velocity of circulation of money = price level x total transactions in the economy or     MV =

Pareto optimality, Diagramatic explanation of pareto optimality

Diagramatic explanation of pareto optimality

Government imposes a price floor, Consider the above table. Assuming the go...

Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result? a. no change, equilibrium would prevail b. T

INFLATION-UNEEMPLOYMENT TRADE-OFF UNDER ADAPTIVE EEX, Explain how inflation...

Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd